Eureka Forbes: Pioneering Growth in India’s Expanding Water Purifier Market

The Indian water purifier market has evolved over the last 30 years to suit water quality challenges and consumer requirements. In the post-pandemic era, people have reevaluated their lifestyles, becoming more health-conscious and aware of the water they are consuming. Continuous air quality deterioration and increased awareness, coupled with modern lifestyle changes, have led to an increase in sales and market size of the purifier market. According to research reports, demand for clean water in the country will give rise to the demand for purified water appliances, which is estimated to reach a market size of almost $4 billion in India by the end of 2024, up from nearly $890 million in 2020.
Eureka Forbes is the pioneer in the manufacture of water purifiers and was incorporated in 1982 with a vision of bringing happy, healthy, safe, and pollution-free living to customers through lasting relationships as “Friends for Life.” The company was set up as a joint venture between Forbes (a Shapoorji Pallonji Group company) and Campbell (a Tata Group company), along with Electrolux of Sweden. Eureka Forbes is now the country’s leading health and hygiene brand and a multi-product, multi-channel organisation.
Eureka Forbes has a customer base of 20 million and a presence in 450 cities and towns in India. The company sells its products through a multi-channel network, including direct sales, 20,000 outlets, and the e-commerce channel. Additionally, it has a global footprint in 53 countries. Eureka Forbes also has over 8,000 company-trained technicians operating from the company’s service centres and an institutional marketing channel known as Forbes Pro Solutions, which offers packaged and customised water treatment solutions across cutting-edge technology for diverse water utilisation purposes and industrial process requirements.
The award-winning “Aquaguard” is the flagship water purifier brand of Eureka Forbes, holding a 15% market share, and Forbes Vacuum cleaners are the market leaders across the country. The company has set targets and key strategic priorities for future profitable growth in the water purifier business through innovation and new product development, along with a jump shift in distribution. The overall product portfolio can be expanded through smart devices to nurture the growth of the cleaning product category. Eureka Forbes is also planning to bring in a Digital First platform, giving customers control and visibility, and digitally enabling the value chain. Most importantly, a crucial priority is to transform the complete customer experience by delivering reimagined service standards and leveraging insights for customised solutions and satisfaction.
In 2022, American buyout firm Advent International bought a majority stake in Eureka Forbes, the consumer durable flagship company of the Shapoorji Pallonji Group, for Rs 4,400 crores, paving the way for futuristic growth. Although Q3FY23 financial results have not been great, analysts are bullish on Eureka Forbes stock from a long-term perspective. The stock price, currently at Rs 370, is a buy and an addition to the investment portfolio for long-term returns.